Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Zhejiang Cheng Yi Pharmaceutical Co (SHSE:603811) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Zhejiang Cheng Yi Pharmaceutical Co ROA % Related Terms
Zhejiang Cheng Yi Pharmaceutical Co ROA % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Drug Manufacturers - Specialty & Generic subindustry, Zhejiang Cheng Yi Pharmaceutical Co's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Zhejiang Cheng Yi Pharmaceutical Co ROA % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Zhejiang Cheng Yi Pharmaceutical Co's ROA % distribution charts can be found below:
* The bar in red indicates where Zhejiang Cheng Yi Pharmaceutical Co's ROA % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Zhejiang Cheng Yi Pharmaceutical Co (SHSE:603811) has a ROA % of 10.17% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Zhejiang Cheng Yi Pharmaceutical Co and its competitors. This is 23% below median its historical median of 13.19. Over the past decade, Zhejiang Cheng Yi Pharmaceutical Co's ROA % has ranged from 9.02 to 19.19. According to the industry distribution chart, Zhejiang Cheng Yi Pharmaceutical Co ranks #139 out of 1008 companies in the Drug Manufacturers industry, placing it in the top 13.8%.
Is Zhejiang Cheng Yi Pharmaceutical Co's ROA % too high?
Zhejiang Cheng Yi Pharmaceutical Co's current ROA % of 10.17% is 23% below median its 10-year median of 13.19. Over the past 10 years, this metric has ranged from a low of 9.02 to a high of 19.19. The Drug Manufacturers industry median ROA % is 2.63. Zhejiang Cheng Yi Pharmaceutical Co's value of 10.17% is 287.4% above this industry median. Based on the distribution chart, Zhejiang Cheng Yi Pharmaceutical Co ranks #139 out of 1008 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Zhejiang Cheng Yi Pharmaceutical Co has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Zhejiang Cheng Yi Pharmaceutical Co's ROA % compare to ZTS?
According to the Drug Manufacturers industry distribution chart, Zhejiang Cheng Yi Pharmaceutical Co ranks #139 out of 1008 companies for ROA %. This places Zhejiang Cheng Yi Pharmaceutical Co in the top 14% of its industry — outperforming the majority of peers. The industry median ROA % is 2.63. Zhejiang Cheng Yi Pharmaceutical Co's value of 10.17% is 287.4% above this benchmark. Historically, Zhejiang Cheng Yi Pharmaceutical Co's own ROA % has ranged from 9.02 to 19.19 over the past decade. While the company's 10-year median is 13.19 vs. the industry median of 2.63, Zhejiang Cheng Yi Pharmaceutical Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Drug Manufacturers company?
The median ROA % among Drug Manufacturers companies is 2.63, based on 1,008 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Zhejiang Cheng Yi Pharmaceutical Co's current ROA % of 10.17% is 287.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Zhejiang Cheng Yi Pharmaceutical Co and its competitors. For the Drug Manufacturers industry, the median ROA % is 2.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Zhejiang Cheng Yi Pharmaceutical Co's current ROA % is 10.17%, which is 23% below median its own 10-year median of 13.19. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Zhejiang Cheng Yi Pharmaceutical Co stock overvalued right now?
Based on GuruFocus' analysis, Zhejiang Cheng Yi Pharmaceutical Co (SHSE:603811) is currently considered Modestly Undervalued. The stock's GF Value™ is ¥8.45, compared to a current price of ¥7.43 — trading 12.1% below its estimated fair value. The current ROA % is 10.17%, which is 23% below median its 10-year median of 13.19 and 287.4% above the Drug Manufacturers industry median of 2.63. Zhejiang Cheng Yi Pharmaceutical Co's overall GF Score™ is 85/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Zhejiang Cheng Yi Pharmaceutical Co (SHSE:603811), the current ROA % is 10.17% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Zhejiang Cheng Yi Pharmaceutical Co (SHSE:603811) Overvalued in 2026?
Based on GuruFocus' analysis, Zhejiang Cheng Yi Pharmaceutical Co stock appears to be undervalued.
The current stock price of ¥7.43 is trading 12.1% below its estimated GF Value™ of ¥8.45.
GuruFocus considers Zhejiang Cheng Yi Pharmaceutical Co to be Modestly Undervalued.
Key valuation signals for SHSE:603811:
ROA %: 10.17% (23% below median its 10-year median of 13.19)
GF Value™: ¥8.45 vs. price of ¥7.43 (12.1% below fair value)
Industry Position: 287.4% above the Drug Manufacturers median (#139 of 1008)
No single metric tells the full story. See the SHSE:603811 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Zhejiang Cheng Yi Pharmaceutical Co Ltd is a pharmaceutical company that produces capsules, injections, tablets, APIs, and pharmaceutical intermediates in China. Its main products include glucosamine hydrochloride raw materials and preparations, torasemide injection and capsules, Gastrodin raw materials, ribavirin and purine raw materials, and so on.
85GF Score
Get the complete analysis for SHSE:603811
ROA % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
SHSE:603811 has been successfully added to your 
